Are you looking to buy or sell a house? Homeownership rates have been on a steady climb since 2016. Coming in at 64.3 percent this year, more and more people are purchasing the home of their dreams.
Although this year has been an interesting time for the real estate market, housing trends continue to evolve. If you're interested in the current housing landscape, here are the top five real estate trends 2020 that you must know.
1. Millennials Are Taking Over
Out of all those buying houses, millennials are the number one age group. Adults between the ages of 22 and 39 made up 38 percent of home buyers last year.
What does this mean for the real estate market? Before buying a home, millennials are conducting solid research. If you're selling your home, be sure that your house listing is viewable online.
Another trend with millennial homeowners is valuing house perks over house size. Overall, laundry rooms, garages, and patios will hold more value with millennial shoppers than the square feet. If listing your house, be sure to highlight all its perks.
2. Home Prices Are on the Rise
While it's a slow and steady climb, home prices are not decreasing anytime soon. While the coronavirus pandemic has affected the real estate market, price increases seem to be back to normal.
If you're buying a house, it's important that you know your budget and stick to it. It's recommended that you should be able to afford at least ten percent of a down payment.
If you're selling a house, you will likely see a decent profit. However, higher rates mean fewer prospects. When listing your house, be aware of your competition's pricing.
3. Mortgage Rates Are Low
Amid the uncertain times we're living in, mortgage rates are remaining low. As of mid-June, the average 30-year mortgage rate fell to 2.98 percent. These low rates are in part responsible for higher housing prices and increased purchasing power.
As rates should stay low throughout the remainder of the year, the real estate market will stay busy. However, uncertain economic times have led to stricter loan qualifications. Low-income families are finding it more difficult to qualify for mortgages.
When listing your home, know who your audience is and if they're well-qualified buyers.
4. Suburban Houses Are Growing in Popularity
One of the top trends in real estate news today is the growing appeal of life in the suburbs. Since the start of 2020, many have made the move from busy cities to quiet neighborhoods.
In bustling areas like Los Angeles and New York, congestion has begun to drive people out. With social distancing and remote work, many are finding that suburban life is better suited for them. For those with homes in family-oriented, quaint neighborhoods, this trend means more prospects.
Before you list your suburban property, check out this roofing guide to ensure your home is in top shape.
5. Commercial Real Estate Is Falling
For office spaces, hotels, and apartment complexes, sales are on the decline.
One of the top commercial real estate trends are higher rates of vacancies due to the coronavirus pandemic. On average, there has been a one percent decline in commercial sales so far. With the rise of coworking spaces and remote work, commercial prices could decrease by five percent by the end of the year.
Real Estate Trends 2020: Start Shopping
Now that you know the top real estate trends 2020, you're better equipped to shop for the home or workspace of your dreams.
For more real estate information, check out our helpful blog posts.